Millions of Big Earners Should Expect Higher Payroll Taxes in ‘17

shutterstock_260489408

 

For those who have been excited to see their tax bill go down under a Trump administration, there might be cause for some concern, especially for some of the country’s highest earners. That’s because for the millions of workers who pass a certain threshold a tax hike is coming. So why the increase?

First, this change was in place before President Trump won the election in November. This scheduled change comes in the form of an adjustment to Social Security payroll taxes, and it will affect a lot of high earners. Over the past several years, workers have paid a 6.2 percent payroll tax to Social Security, which is matched by employers and automatically deducted from their paychecks.

That number will remain the same in 2017, but there is a catch. It used to be that workers only paid that amount on the first $118,500 they earned for the year. This year, that threshold increases to $127,200. That will amount to hundreds of dollars for anyone affected. Meantime, for self-employment workers, the news is even worse because they are forced to pay the full Social Security tax themselves without splitting the cost with an employer.

So how many people are we talking about? Anyone that makes less than $118,500 won’t be affected but the estimated 12 million workers that make more than that will see a hit, which amounts to one of the biggest changes in the tax code in nearly 30 years.

http://time.com/money/4628475/payroll-taxes-social-security-2017/

Posted in
What Sets Confident People Apart?

What Sets Confident People Apart?

What Sets Confident People Apart? What makes someone successful? Successful people have many positive attributes, but what really sets them apart from others is confidence. Those who have confidence are more likely to succeed than those with self-doubt.  That’s really a no-brainer, right?  But what makes confident people different? Well, you can start with some…

The Best Way to Deliver Criticism

The Best Way to Deliver Criticism If done in the wrong way, criticism can break a relationship or leave someone feeling bad or upset. When critiquing, you want to avoid these negative emotions at all cost, after all criticizing is meant to help someone improve, not bring them down. Is there a way to criticize…

Social Media Platforms Trying to Shut Down Crypto Scams

Social Media Platforms Trying to Shut Down Crypto Scams

Social Media Platforms Trying to Shut Down Crypto Scams The world of cryptocurrency is ripe with excitement. However, it’s just as ripe with scams. In fact, a growing number of entities are doing their part to try to curb some of these scams and protect those interested in investing in cryptocurrency. Recently, Twitter announced that…

Here’s What Successful People Do Differently

Here’s What Successful People Do Differently Think about some of the most successful people you know. What makes them stand out? How did they become successful? What things do they do differently than most people? It takes hard work and the right attitude to become successful.  And most successful people share very similar characteristics. So…